Land Investment

Land is an investment opportunity that has a proven track record. When considering investing in land, remember to look at resources, timber, water and location. There are several factors that effect land value and that is the purpose of Land Investment at Greenwood Project.

Surveys

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When you see a specific acreage on a “for sale” sign, an on-line listing, a real estate flyer, or a printed ad, do you ever wonder where the exact acreage comes from? How do they know exactly how many acres they are selling? And, how do you know (for sure) how many acres you are buying? It might not surprise you if I told you that both sellers and seller’s agents often use the tax records, recorded deeds, wills, family records, drawings, court documents, historical documents, and many other sources to determine acreage. What may … [Read more...]

Foreign Landowners

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Did you know that foreign persons holding an interest in U.S. farm lands are required to report their holdings and any transactions to the U.S. Secretary of Agriculture?  According to Nevada Farm Service Agency Executive Director, Clint Koble, "Any foreign person who acquires, transfers, or holds an interest, other than a security interest, in agricultural land in the United States is required by law to report transactions no later than 90 days after the date of transaction."  For AFIDA (Agricultural Foreign Disclosure Act) purposes, … [Read more...]

How To Allocate A Land Purchase?

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I was recently asked the following question. " Paul, you cover depreciating improvements on land. I am buying 150 acres in north-central Iowa that is bare ground. It has two county main tile lines running through it, has a blacktop road on one side and a gravel road on another. I am paying $705,000 for the farm. 15 acres are in CRP because they are wet. What percentage can you typically deduct for roads, tile, etc?” When you purchase 150 acres of farm land, you are, as in this case, actually purchasing many components that need cost … [Read more...]

New Tax Information for Farmers

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The Small Business Jobs Act of 2010 was just recently passed by both the House and Senate and President Obama will sign it when he gets back from China.  This Act has several tax “goodies” for farmers and it also has some not so good “goodies”.  A recap is as follows: Section 179 Expensing - Earlier in the year, the law increased the expense deduction up to a maximum of $250,000. This Act increases that amount to $500,000 and the phaseout does not start until you purchase at least $2 million of equipment.  For almost all … [Read more...]

Farmland Provides Good Returns

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Over the years farmland investment has yielded a very competitive rate of return compared to other investments.  However, about half of the return comes from appreciation in land, which can be unpredictable and it does not provide any cash to cover expenses or mortgage payments. Recent research breaks down the years between four distinctly different periods: The farm boom period from 1970 to 1981 The farm crisis from 1982 to 1987 The recovery period from 1988 to 2003 The Ethanol Boom from 2004 to 2009 During the farm boom … [Read more...]

Timberland as Part of Your Investment Portfolio

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According to the folks at J.P Morgan, investors looking to boost returns, diversify, and participate in green investments may want to look at Timberland.  J.P. Morgan Investment Analytics and Consulting, a division of J.P. Morgan Worldwide Securities Services, conducted an analysis of the company’s performance over the past 22 years.  The study showed that Timberland has provided an annualized return of 14.60% as well as impressive diversification benefits. The following article (which appears on the JP Morgan website) was written by … [Read more...]

Looking for a Land Bargain

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Shopping for a land bargain often results in shopping for the lowest price per acre, but Greenwood Project founder, Don Webb offers some perspective on land values and what landowners can do to protect their investment. ...... … [Read more...]

Land as an Investment

Land Investment

I don't think it comes as a surprise to anyone that land is a great investment, but for most people all they hear about land investment is what they hear from some Real Estate GURU with a pitch about how to get rich quick with residential real estate.  All the gurus make it sound so easy. But do you really want that? The headaches of buying houses, dealing with contractors in some never ending rehab operation, then trying to find tenants……then dealing with all the problems……broken water pipes…..busted water … [Read more...]

Timberland Investment is a Hedge Against Inflation

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Several weeks ago I wrote an article advocating timberland as a sure fire way to build wealth in any economic market.  Well, it appears that I'm not the only who is getting that message.  In a recent "Investment News" article, several executives at some of the largest investment firms in America were promoting the inclusion of "hard" assets in any investment portfolio.  Hard or "tangible" investments are just that.....investments that you can put your hands on, like gold, timberland, and farms. Hedge Against Inflation I spoke at length … [Read more...]

How much wood would a woodchuck allocate if a woodchuck would allocate part of his portfolio to wood?

Timber

Great information on timber investment in the article below..... Click here to read article … [Read more...]